AG agrees with Hassan's interpretation of state campaign finance law

The state Attorney General's Office agreed with Gov. Maggie Hassan's interpretation of state campaign finance law but said on Friday that because of a technicality, her campaign must return $24,000 to a union.

The implications of the ruling don't change a law, but in practice it could mean that there will be a flood of new money coming into state elections, particularly from special interest groups.

In question is $45,000 in campaign donations Hassan received around the time she signed up for re-election in June. There were three different donations from unions -- one of $25,000 and two $10,000 donations. Republicans contend that a 2012 letter from the AG's office reaffirmed the maximum donation is $7,000 for the election cycle.

However Democrats say a loophole has existed and exploited for decades that allows a state political action committee to give unlimited donations to another political action committee. The trick then is to convert the receiving political action committee to a campaign committee, which is what Hassan did.

The AG's office said this loophole is legal. Hassan appointed the current attorney general last year.

The reason that Hassan has to give back $24,000 is that the $25,000 donation came a day after the deadline. After that deadline, only $1,000 could be accepted.

Hassan's campaign said it was happy the AG reaffirmed their legal argument.

"We thank the Department of Justice for quickly reaffirming that these long-standing practices are in accordance with New Hampshire law," said Hassan campaign spokesman Aaron Jacobs. "Numerous past candidates going back nearly two decades have accepted similar contributions based on guidelines and advice from the Attorney General's office and the Secretary of State's Office, and we appreciate the Department of Justice's quick decision upholding past practice and precedent.

"While all of the contributions were issued before the deadline, we will return the funds that were physically delivered after the deadline in line with the Department of Justice's guidance. The governor would welcome the Legislature's engagement in efforts to clarify New Hampshire's campaign finance laws."

But since one donation came after what the AG's office says was the deadline, state Republicans are calling it an illegal donation and a scandal.

"It appears that Gov. Hassan is the only official who has attempted to exploit this questionable exception and allow the corrupting influence of unlimited special interest donations to poison her campaign," said state Republican chair Jennifer Horn. "It will up to the next responsible Republican governor to close the 'Hassan Special Interest Loophole' and restore integrity to our campaign finance system."

With the election a little over three months away, this news could make its way into Republican campaign ads, but less clear is if the public will understand the issue, much less care.

GENERAL RULED THAT HER P AC MUST RETURN $24,000 IN CAMPAIGN CONTRIBUTIONS. STEPHANIE WOODS JOINS US TO EXPLAIN THE RULING. A RULING FROM THE ATTORNEY GENERAL HAS BOTH SIDES OF THE AISLE CLAIMING IT IS RIGHT. JOE FOSTER ORDER GOVERNOR MAGGIE HASSAN'S PAC TO RETURN ALL BUT $1000 OF THE $25,000 DONATION HE RECEIVED FROM AN ORGANIZED LABOR PAC. WHILE THE A.G. AGREES WITH THE GOVERNOR'S INTERPRETATION, THE GOP DISAGREES. IN JUNE THE NEW HAMPSHIRE GOP FILED A COMPLAINT CLAIMING THE FRIENDS OF MAKING HASSEN PAC ACCEPTED ILLEGAL CONTRIBUTIONS FROM THREE LABOR UNION PACS. GOVERNOR HASS AN HAS BEEN CAUGHT LEGALLY -- ILLEGALLY ACCEPTING CAMPAIGN CONTRIBUTIONS. THEY ARGUE THAT STATE LAW FORBIDS CANDIDATES TO ACCE PT MORE THAN $5,000 IN DONATIONS FROM AN INDIVIDUAL. THE A.G. R ULES THAT THIS ONLY APPLIES TO PEOPLE AND CONTRIBUTIONS BETWEEN COMMITTEES AND THEIR LIMITLESS -- ARE LIMITLESS. THE CHAIRWOMAN THINGS THE GOVERNOR SHOULD NOT HAVE USED WHAT SHE CALLS THE LOOPHOLE. IT IS IMPERATIVE THAT THE GOVERNOR RELEASE ALL OF HER CAMPAIGN FINANCE REPORTS IMMEDIATELY SO THAT THE PEOPLE OF NEW HAMPSHIRE CAN SEE JUST HOW FAR THE SCANDAL GOES. THE IBEW PAC ALONE DONATED $25,000 ON JUNE 12, THE SAME DAY HASSEN FILED FOR REELECTION. BECAUSE IT WAS NOT RECEIVED UNTIL JUNE 13, THE A.G. RULED THAT A $1000 CONTRIBUTION LIMIT TOOK EFFECT. HASSEN'S CAMPAIGN MAINTAINS THEY FOLLOWED STATE LAW. " WE WILL RETURN THE FUNDS THAT WERE PHYSICALLY DELIVERED AFTER THE DEADLINE." REPUBLICAN GUBERNATORIAL CANDIDATE WALT -- RELEASED A STATEMENT TODAY SAYING THAT IF HE BECOMES GOVERNOR HE WOULD CLOSE THE LOOPHOLE. THE GOVERNOR SAID SHE WILL WORK WITH THE LEGISLATURE TO CAMPAIGN